If, in the example below, the lease was considered a financial lease in the example below for accounting and VAT purposes, it cannot always be accepted only for all leasing contracts. As shown in the tables above, the indicators for classifying a funder for accounting purposes are very different from the requirements for financial leasing (as defined in point (b) of the definition of instalment credit agreement in the VAT Act) for VAT purposes. Accounting ratio to the requirements of the installment credit agreement The transaction therefore qualifies as a financial lease within the meaning of point (b) of the definition of installment credit agreement of the Turnover Act. The table below takes into account the information in Example 1 for the classification of an installment credit agreement with respect to paragraph (b) (i.e. a lease) for VAT purposes: a lease is normally classified either as a financial lease or as a hire purchase agreement for the purposes of applying IFRS to SMEs. . . .